Here at BitIRA, we love just about everything about crypto.
Except taxes. Let’s face it – crypto taxes can be a real headache. As with everything relating to the IRS, getting the answers absolutely right is critical. Nobody wants to find out their series of profitable trades comes with a surprise bill…
Our mission is to demystify the complex and exciting world of cryptocurrency. That includes doing our best to shine some light into the murky questions around crypto taxes.
That’s why I’m excited to announce the publication of our latest, 6th annual, Crypto Tax Q&A. Delve into the world of crypto conundrums and learn how the sharpest cryptocurrency tax experts in the nation tackle the most challenging questions.
Let’s face it: The rapidly-changing IRS rules, guidance and guidelines (yes, these are all different things!) regarding crypto transactions, tracking and reporting can leave you scratching your head. But your income taxes aren’t one of those problems you can ignore until they go away.
This year’s Crypto Tax Q&A delves into pivotal subjects such as cost basis determination, variations in reporting requirements for hot and cold wallets, and tax implications for assets entangled in bankruptcy proceedings. By addressing these crucial topics, we equip investors with the knowledge needed to navigate the complex terrain of crypto tax compliance. Here are a few specific questions:
- “Given that I mainly buy and hold cryptocurrencies, what strategies should I employ to ensure compliance with tax regulations without causing unnecessary stress?”
- “If a loan was taken out to buy Bitcoin, could the interest expense be claimed as part of the basis?
- “Would you summarize the worst pitfalls for HODLers when Celsius closes their website in the next 2 weeks?”
- “Earlier this year, I transferred some crypto from an exchange onto a hardware wallet. The funds were non-qualified. Is that a taxable event?”
Hopefully the free advice from CPAs and tax specialists will get you on the right track. If you need more help, we maintain a list of top accountants specializing in cryptocurrency.
Maybe you’ll decide you want to stay invested in cryptocurrencies without the tax hassles? Consider exploring a Digital IRA with us. Get the same diversification and the same exposure to growth potential without the tax uncertainties! Better still, in a retirement account, your trades are tax-free and your gains are tax-deferred. A tax-efficient approach to crypto investments could help you pave the way to a truly amazing financial future.
More crypto tax resources
Here’s our 2023 Crypto Tax Q&A
A few of the most frequently asked questions:
“Is there anything I can do to lower my crypto tax bill?”
“Is it a taxable event to move tokens from one wallet or exchange to another?”
“If I pay someone for an item with bitcoin or ether, is that a taxable event?”
And a few links for those who prefer to go straight to the source:
- IRS on digital assets
- IRS digital assets FAQs
- …and a press release about the hazards of attempting tax evasion on cryptocurrency profits (don’t be THAT guy!)
Remember, before you find yourself stumped with another crypto tax question next year, there’s a better way that simplifies a lot of these challenging questions… Learn more about opening a Digital IRA.
